Finance Minister Vu Van Ninh: Tax exemption proposal to the National Asssembly to solve difficulties for enterprises and individuals.

Finance Minister Vu Van Ninh: Tax exemption proposal to the National Asssembly to solve difficulties for enterprises and individuals. 01/08/2011 06:53:00 526

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Authorised by the Prime Minister, in the Assembly meeting section in the afternoon of 21/7, Finance Minister Vu Van Ninh presented the proposal of some taxes policies to solve difficulties for enterprises and individual in order to push up economic development in 2011.


Accordingly, the government proposed to remit 30% of income tax for small and medium enterprises and enterprises which used lots of labours in producing and processing fields; 50% of presumptive tax for individual businesses in the low-price leasing field.


About personal income tax, dividends from stock market would not have to bear tax from 1/8/2011 to 31/12/2012. 


Individuals who obtain their income from salaries, wages and from business would not have to pay tax if their income does not excess the first level of the partially progressive tax index.


The emplementation of these measures would help enterprises lessen their difficulties, create opportunities for them to stabilize and develop their business; make the workers feel secure. 


According to the government’s assessment, these tax remissions would affect the State Budget income mainly in 2011 and part of 2012. 


The total tax delay in 2011 is about 6,900 billion VND (would be collected in 2012), the total tax remission in 2011 is about 4,200 billion VND; the total tax remission in 2012 is about 2,200 billion VND.


According to the verified report of the Assembly Budgetary and Financial Committee presented by the Chairman Phung Quoc Hien, the Assembly approval of this proposal is necessary. 


Budgetary and Financial Committee said that the tax remission of 30% should be considered towards small and medium enterprises (236,500 ones). As stated in the Laws of Taxation, the tax remission is not applied to all businesses but should be considered in particular situation. 


For the 50% presumptive tax remission, corperate income tax, personal income tax, most of the Committee members’ opinions are in favour. However, they would like to have strong, effective manament measures to make sure that this policy can really benefit the labours and students. 


According to the government’s proposal, to make up for the tax remission, the government has been raising income from crude oil. The oil price had increased to 103 USD from the beginning of the year. This price is 26 USD higher compared to the estimated price approved by the Assembly.


Secondly, the income can be increased by modifying the import tax policies towards some items like cars, resources tax, and other serious measures to collect taxes from enterprises with foreign investment. 


Previously, the Assembly listened to Minister Vu Van Ninh present the proposal of State Budget Settlement for 2009 for approval and approved the list of members for the Delegate Status Verified Committee with 99.2% agreed.